PART SIX "A": LINKAGE OF INCOME CEILINGS, CREDIT
POINTS, PENSION POINTS AND SOCIAL CONCESSIONS
Definitions
120A. In this Part –
"social concessions" – the amount specified in section 9(5), the amounts of
exemption of a retirement grant or death grant under section 9(7a), the
amount stated in section 9(16a), (16b) and (18a), the amount exempt under
section 9(20), an entitling pension within its meaning in section 9A(a), the
amount exempt under section 9A(b), the amount stated in section 9A(c), the
amount stated in section 17(5a), the amount stated in section 32(9), the
amount stated in section 44(a)(1) as the ceiling of the amounts in respect of 183
which credit is to be allowed, the amounts stated in section 45A, the amounts
stated in section 47, the amount stated in section 57(b)(1), the amount stated
in section 58A(c), the amount stated in section 66(e)(2) and the amounts
stated in section 125D;
"income ceilings" – the amounts of income for the purpose of determining
tax rates under section 121, and for the purpose of the rates of credits under
section 121A.
Linkage
120B. (a) On January 1 of every tax year income ceilings, the amounts of credit
points and of pension points, as well as social concessions (all these
hereafter in this section: "the amounts"), as they were on January 1 of
the preceding tax year, shall be adjusted at the rate of the index
increase during the preceding tax year. (Amendment No. 136 provides
that – as long as the index does not rise by more than 5% over the
index known on January 1, 2004 – the words : "the amounts of credit
points and of" in this section should not be read in tax years 2005 to
2008 – Tr.).
(b) If an agreement between the Coordination Office of the Economic
Organizations and the General Federation of Labor in Israel determined
that a cost of living bonus be paid to wage earners in the economy, in
respect of work performed in a certain month and thereafter, then the
amounts of pension points as of January 1 of that tax year shall be
adjusted in that month at the rate of the index increase from the
beginning of the tax year until the end of the said month.
(c) Repealed
(d) The Minister of Finance may make rules for rounding off amounts
adjusted under this section. |
